Fed cuts interest rates, US stocks hit new record highs, tech stocks surge

On November 7, the US Federal Reserve (Fed) decided to continue to reduce interest rates by 0.25 percentage points.

Fed headquarters in Washington, USA. (Source: Getty Images)

The Fed made the decision after policymakers assessed that the labor market had generally loosened and inflation continued to move toward its 2% target.

US policy interest rate down to 4.50%-4.75% range.

In a statement released after the meeting, the Fed assessed that labor market conditions had generally eased although the unemployment rate remained low, while economic activity continued to grow at a solid pace.

The bank noted that risks to the labor market and inflation were “roughly balanced,” similar to the statement issued after its September 2024 meeting.

As for inflation, the Fed's new statement said price pressures are progressing toward the agency's target.

The core personal consumption expenditures (PCE) price index, which excludes food and energy items, has been relatively stable over the past three months (through September 2024), hovering around 2.6% year-over-year.

Currently, US economic growth remains strong even though the pace of hiring by businesses slowed in October 2024 mainly due to the negative impact of hurricanes and strikes.

* The S&P 500 and Nasdaq hit new record highs after the Fed decided to cut interest rates.

The tech-heavy Nasdaq Composite led the way, rising 1.5% to a record high of 19,269.46. The S&P 500 also rose 0.7% to 5,973.10, also a record high. Meanwhile, the Dow Jones Industrial Average closed at 43,729.34.

This session, the stock prices of large technology corporations such as Meta and Apple increased sharply, helping to boost the stock market's growth.

Source: https://baoquocte.vn/fed-ha-lai-suat-chung-khoan-my-cham-muc-cao-ky-luc-moi-co-phieu-tap-doan-cong-nghe-tang-manh-292983.html